Earthmoving equipment supplier
Emeco Holdings
has forecast earnings growth of as much as 25 per cent for the full year and has boosted spending plans for 2013 to capitalise on expansion opportunities.

Net operating profit for the year ending June 30 should be between $67 million and $70 million, in line with market consensus, Emeco said on Friday. That represents earnings growth of 20-25 per cent on the previous year.

Chief executive
Keith Gordon
said that despite a “slow" start to the year in Indonesia and Canada, the company was finishing the year with strong utilisation in both those markets, as well as in Australia. The Chilean market was also showing strong indications of demand.

“With robust underlying utilisation and the growth capital we have invested in the business, we are entering FY2013 [financial 2013] with solid earnings momentum," Mr Gordon said.

The second half of financial 2012 is set to provide the bulk of the year’s profit as Emeco is forecasting net operating profit for the June half of between $37.8 million and $40.8 million.

The company, which will release its full-year results on August 21, said it had increased growth capital expenditure for financial 2013 to $140 million, up from a previously indicated $80 million. Most of the investment will go towards the Chilean and Indonesian markets.